BitMEX co-founder Arthur Hayes warns competition from traditional finance and crypto exchanges may pressure Hyperliquid’s token model.
Hyperliquid’s decentralized derivatives platform has gained traction since 2023, driving its native token, HYPE, to record highs. The protocol’s model relies on trading fees to buy and burn tokens, creating scarcity, but Hayes cautioned this leaves it vulnerable to market share losses amid rising competition.
HYPE traded near $59 on Sunday, down 14% over the past week, despite recent all-time highs. Hayes highlighted threats from Wall Street and established exchanges like Binance, which could expand into real-world asset perpetual contracts, a key growth driver for Hyperliquid.
Hayes disclosed selling his HYPE holdings, citing macroeconomic concerns, including rising energy prices and a shift in U.S. policy. His earlier prediction targeted $150 for HYPE by August 2026, but he now advises taking profits.